Small Steps – Update Your KiwiSaver Contact Details
If you have ever tried to tidy up your financial affairs, it can be overwhelming to try and do everything at once. Like most big projects, the best way to achieve success is to break it down into bite sized chunks. Our Small Steps blog series is all about tidying up your finances one step at a time. This month on Small Steps – it’s time to update your details with your KiwiSaver provider
Why is it important to update my contact details with my KiwiSaver provider?
Once you have purchased your first home, KiwiSaver should largely be viewed as a “set-and-forget” investment. It doesn’t really matter what you have invested until you are 64.9 years old. Right?
Sort of. Each year, there are 2 main things that you should check:
- your PIR tax (the rate that your investment gains are taxed at) is correct
- that you are going to receive the maximum Member Tax Credit (check you have deposited at least $1,042 over the year).
So while the total in your KiwiSaver isn’t important, you need to receive an annual statement to make sure these details are correct.
There is one more (slightly less pleasant) reason to update your address. If you were to pass away, updated details make the handling of your estate significantly easier.
How do I update my address if I don’t know who my KiwiSaver provider is?
It’s estimated that 40% of Kiwis don’t know who their KiwiSaver provider is. This is due to the auto-enrolment scheme that New Zealand has (in my opinion, rightly) in place. The first time you move into a salaried position you are auto-enrolled with one of the default providers. You may not even notice who your money is going to.
Then, as soon as move house or flat, your information is out of date. Now you don’t know where your money is invested and you aren’t receiving statements.
If you are in this position, don’t worry. As we saw above, a significant amount of other Kiwis are too. You might take this moment to reassess which KiwiSaver provider you are with. If you think there is a better option out there, you can change. And when you change your KiwiSaver provider, you will give your new provider fresh details and you are sorted.
How do I update my address with my current provider?
If you know who your KiwiSaver provider is, it’s simply a case of calling your provider and updating your details. You should be prepared with your account number and they may require that you prove where you live with a Utility Bill or Bank Statement.
Congratulations! You’ve taken another small step towards being financially organised!